Chase and Bank of America Update Overdraft Fee Policies

Here's an outrageous fact: Overdraft fees bring the banking industry tens of billions of dollars in revenue annually. My first thought? I wonder how much of that is from my account. It's true: Though I've repeatedly asked my bank to cut me off at zero (it seems only logical!), they passively refuse (by saying OK and then not doing it)—and I've been paying for it.

My favorite: An overdraw of 10 cents resulting in a charge of $35 dollars. And, unfortunately, Bank of America only gives you one "Stuff Happens" pass. Thankfully, due to a little consumer OUTRAGE here and a little legislative pressure there, both Bank of America and Chase are revising their overdraft plans. We've pinned down the facts (Thanks, NYTimes.com):

Beginning Oct. 19, Bank of America will stop charging any fees for customers who overdraw their accounts by less than $10 in a single day. It will also limit the number of overdraft fees it charges to four a day, although the bank will continue to charge a fee of $35 per overdraft. At that time, customers can turn off the ability to overdraw completely, in which case Bank of America will no longer cover bounced checks.

Chase will cap the number of overdraft fees it charges a day to three. It will stop charging fees when accounts are overdrawn by less than $5. Chase's overdraft fees are $25 for the first fee each year, $32 for the next four and $35 after that.

Chase said it would let its customers know how to opt out completely once its system was in place.